VZCZCXRO0076
RR RUEHRG
DE RUEHBR #1477/01 3181421
ZNR UUUUU ZZH
R 131421Z NOV 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 2876
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHUNV/USMISSION UNVIE VIENNA 0129
INFO RUEHSO/AMCONSUL SAO PAULO 3035
RUEHRI/AMCONSUL RIO DE JANEIRO 6850
RUEHRG/AMCONSUL RECIFE 8677

UNCLAS SECTION 01 OF 02 BRASILIA 001477 
 
SIPDIS 
 
SENSITIVE 
 
STATE PLEASE PASS TO IO/T - H. VON BEHREND, ISN/NESS - DICK 
STRATFORD, ISN/CPI - KEVIN MCGEEHAN, ISN/RA - RISA MONGIELLO; ENERGY 
PLEASE PASS TO NNSA - ADAM SCHEINMAN, RICHARD GOOREVICH, AND MELISSA 
KRUPA 
 
E.O. 12958: N/A 
TAGS: KNNP TRGY ENRG KSTC IAEA PARM BR
SUBJECT: BRAZIL: UPDATE ON NUCLEAR MATTERS 
 
REF:  A) STATE 112229, B) STATE 114408, C) STATE 89032, 
D) BRASILIA 1289 
 
¶1.  (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT 
ACCORDINGLY.  NOT FOR INTERNET DISTRIBUTION. 
 
¶2.  (SBU) SUMMARY.  Per November 10 meeting with the Ministry of 
External Relations (MRE) Division of Disarmament and Sensitive 
Technologies (DDS), the Government of Brazil (GOB) has not received 
an invitation to the Iran nuclear conference (REFTEL A).  Further, 
it assures that it will comply with UN Security Council Resolutions 
regarding Iran and appreciated the information from the USG about 
freezing the assets of the Export Development Bank of Iran and three 
affiliated entities (REFTEL B).  The MRE is supportive of the USG 
proposal (REFTELS C) for using IAEA safeguards for nuclear material 
returned to the United States from Brazil; however, the MRE is 
awaiting word from Brazil's National Nuclear Energy Commission 
(CNEN) before formally responding to the U.S. diplomatic note 
(REFTEL D).  Finally, on November 10, Post delivered a copy of the 
letter and proposed revision to Paragraph 6(a)(ii) of the Criteria 
Based Approach to Control Sensitive Nuclear Technologies in the NSG 
Part 1 Guidelines, from National Nuclear Security Administration 
(NNSA) Administrator Thomas D'Agostino, to Defense Minister Nelson 
Jobim and to MRE Under-Secretary for Bilateral Politics Ambassador 
Everton Vargas, with a copy for MRE/DDS.  END SUMMARY. 
 
NO INVITATION YET FROM IRAN FOR NUCLEAR CONFERENCE 
 
¶3.  (SBU) On October 28, 2008, Environment, Science and Technology 
(EST) Officer delivered REFTEL A non-paper on Iran's upcoming 
nuclear conference on November 30, 2008 to Ministry of External 
Relations (MRE), Head of the Division of Disarmament and Sensitive 
Technologies (DDS), Minister Santiago Mourao, and to Third Secretary 
Fabio Simao Alves, who works in MRE/DDS.  During a November 10 
meeting between Simao Alves and EST Counselor and EST Officer, Simao 
Alves stated that the Government of Brazil (GOB) had not received an 
invitation from Iran and was not aware of the nuclear conference. 
MRE/DDS had looked into the matter, and neither the MRE's Energy 
Department nor its Iran Desk had heard anything about the 
conference.  In the case that it does receive an invitation, Simao 
Alves said the GOB realized such a conference would be a very 
sensitive political issue.  The MRE would need to consider the 
matter carefully.  Simao Alvas added that the GOB would welcome 
additional information on the conference should it become 
available. 
 
FREEZING ASSEST OF EDBI AND AFFILIATES - COMPLYING WITH UNSCRS 
 
¶4.  (SBU) Also at the November 10 meeting, EST Counselor and EST 
Officer raised with Simao Alves the matter of freezing the assets of 
the Export Development Bank of Iran (EDBI) and three affiliated 
entities.  Post had earlier delivered to MRE/DDS REFTEL B, which 
notified the GOB that pursuant to UN Security Council Resolutions 
(UNSCRs) 1737, 1747 and 1803, and Executive Order 13382, the USG was 
freezing the assets of EDBI and these affiliates.  Simao Alves 
appreciated the information and stressed that the GOB was committed 
to upholding the UNSCRs regarding Iran.  He said they were not aware 
of EDBI or any of the affiliated entities being present in Brazil. 
He reassured that the GOB was doing its utmost to internalize and 
comply with the UNSCRs regarding Iran. 
 
SAFEGUARDS FOR NUCLEAR MATERIAL CONTAINED IN IRRADIATED RESEARCH 
REACTOR FUEL RETURNED BY BRAZIL 
 
¶5.  (SBU) During the November 10 meeting, ESTOFFs followed up on 
REFTEL C with respect to arrangements that proposed to apply 
International Atomic Energy Agency (IAEA) safeguards to irradiated 
research reactor fuel of U.S. origin to be returned from Brazil to 
the U.S. Department of Energy Savannah River Facility for 
disposition.  On September 22, Post had delivered this proposal per 
Diplomatic Note number 387 (see REFTEL D).  Simao Alves indicated 
that the MRE supported this proposed application of safeguards. 
However, the MRE had to finish its consultations with the Brazil's 
National Nuclear Energy Commission (CNEN) to query about an official 
response.  Simao Alves said that MRE was awaiting the formal 
response from CNEN.  MRE would send an official response once it 
became available. 
 
PROPOSED LANGUAGE FOR NUCLEAR SUPPLIERS GROUP CRITERIA-BASED 
APPROACH TO TRANSFER OF ENRICHMENT AND REPROCESSING TECHNOLOGY 
 
¶6. (SBU) On November 10, Post delivered a hard copy of the letter 
 
BRASILIA 00001477  002 OF 002 
 
 
and proposed revision to Paragraph 6(a)(ii) of the Criteria Based 
Approach to Control Sensitive Nuclear Technologies in the NSG Part 1 
Guidelines, from National Nuclear Security Administration (NNSA) 
Administrator Thomas D'Agostino, to Defense Minister Nelson Jobim 
and to MRE Under-Secretary for Bilateral Politics Ambassador Everton 
Vargas, with a copy for MRE/DDS. 
 
SOBEL